By The Rio Times | Created at 2024-11-21 21:29:30 | Updated at 2024-11-24 23:59:14
3 days ago
The precious metals market witnessed a notable trend as gold futures climbed for the fourth consecutive session on Thursday. Investors flocked to safe-haven assets due to growing geopolitical tensions between Ukraine and Russia.
This shift in market sentiment pushed December gold futures up by 0.87%, reaching $2,674.90 per troy ounce on the Comex division of the New York Mercantile Exchange.
The SPDR Gold Trust, an exchange-traded fund (ETF) tracking physical gold, has seen positive net inflows since last Friday. XS.com analyst Samer Hasn noted that this four-day streak of net inflows had only occurred once before, in March.
This recent uptick follows a significant 4% drop in gold futures prices the previous week. The surge in gold prices coincides with heightened geopolitical tensions in Eastern Europe.
Russian President Vladimir Putin announced on national television that Russia had tested a new medium-range missile against Ukraine.
Gold Prices Surge Amid Escalating Ukraine-Russia Tensions. (Photo Internet reproduction)Putin claimed this offensive was in retaliation to earlier Ukrainian attacks using missiles supplied by the United States and the United Kingdom.
Diplomatic Tensions Fuel Gold Market Reaction
Adding fuel to the diplomatic fire, Russian Ambassador to the UK, Andrei Kelin, accused British forces of direct involvement in the Ukraine conflict. These statements have further strained international relations and increased market uncertainty.
The gold market’s reaction reflects investors’ concerns about global stability. As tensions rise, market participants often turn to gold as a hedge against potential economic disruptions.
This behavior typically drives up demand and prices for the precious metal. Analysts suggest that the current geopolitical climate may continue to support gold prices in the near term.
However, they caution that market conditions can change rapidly based on diplomatic developments or shifts in monetary policy. As the situation unfolds, investors and market watchers remain alert to any signs of de-escalation or further conflict.
The gold market’s performance serves as a barometer for global risk sentiment, reflecting the complex interplay between geopolitical events and financial markets.
